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To: American Spirit who wrote (77521)	5/29/2001 8:57:54 PM
From: JHP	Respond to of 99985

did ya no about this mate? One.Tel suspension may hit News Corp and Lucent By Shawn Donnan in Sydney Published: May 28 2001 14:31GMT \| Last Updated: May 28 2001 15:34GMT A surprise move by One.Tel, the Australian telecommunications group, to suspend trading on Monday prompted speculation that a plan to raise badly needed cash may be in danger, threatening the company's future and leaving Rupert Murdoch's News Corp nursing possible substantial losses. News Corp and Kerry Packer's Publishing and Broadcasting Limited together own 41 per cent of One.Tel as a result of investments spearheaded by the two mogul's sons, Lachlan Murdoch and James Packer. However, a spectacular slump in One.Tel's shares from more than A$12 at its peak to A$0.19 prior to the trading suspension has left News Corp carrying a loss of A$500m (US$260m) and PBL down more than A$300m on its investment. As a result, the two media companies moved this month to oust One.Tel's co-founders, Jodee Rich and Brad Keeling, from management and unveiled plans for a A$132m emergency rights issue. But the move to raise the cash appears in doubt following One.Tel's decision to call a trading halt. Analysts are worried that since taking control of One.Tel's management, News Corp and PBL have uncovered skeletons prompting them to reconsider underwriting the issue. If the two media companies decide to walk away, One.Tel could face a move into either provisional liquidation or voluntary administration. "If [News Corp and PBL] withdraw, there's nothing left of One.Tel," said one analyst. One.Tel's high profile means the potential effects of a collapse would extend far beyond Australia. One.Tel once boasted to be second only to Foster's as an Australian brand in the UK and claims to have some 650,000 customers in Britain. Besides its native Australia, where it operates one of five mobile networks and offers internet, domestic and international services, it also provides telecoms services in the Netherlands, Germany, France and Switzerland. But the biggest effect could be left with its leading creditor, US technology giant Lucent, with which One.Tel signed a A$1.1bn contract to build its Australian mobile network in 1999. Because interest payments to Lucent are not due until 2003, the American company could be left holding an Australian mobile phone network analysts say it could have difficulty reselling. According to Marcus Fanning, chief fund manager for Bankers Trust Australia, which until last week was a main shareholder in One.Tel, the structure of the Lucent deal could give One.Tel some breathing room and help it avoid the possibility of a total collapse. Analysts said that left other potential options, including the sale by One.Tel of assets such as its UK operations, which Mr Fanning called one of the "few saleable, cash-flow positive assets they have